Qatar banks' total assets rise 3.4% to reach QR1.969tn in 2023: QNBFS

Total assets of banks in Qatar increased by 3.4% to reach QR1.969tn in 2023, QNB Financial Services (QNBFS) said in its latest update.Assets grew by an average 6.8% over the past five years (2019-2023), QNBFS noted.Loans increased by 2.5% in 2023 to reach QR1,287.9bn, compared to a growth of 3.3% in 2022. Loans grew by an average 6.5% over the past five years (2019-2023)Deposits declined by 1.3% in 2023 to reach QR986.0bn, compared to a growth of 2.6% in 2022. Deposits grew by an average 4.1% over the past five years (2019-2023)Qatar banking sector total loan book went up 1.1% MoM while deposits moved up 0.5% MoM in December 2023.The public and private sectors pushed the overall credit higher. As deposits edged up in December, the Loans to Deposits ratio (LDR) went up to 130.6% compared to 129.7% in November 2023.The overall loan book made gains of 1.1% in December 2023. Total public sector loans increased 2.6% MoM (-1.6% in 2023). The government segment (represents 29% of public sector loans) was the main growth driver for the public sector with a surge by 7.9% MoM (-8.5% in 2023), while the government institutions’ segment (represents 65% of public sector loans) moved up 0.6% MoM (-0.2% in 2023).However, the semi-government institutions’ segment declined very marginally MoM (+23.9% in 2023).Total private sector loans moved up 0.7% MoM (+4.9% in 2023) in December 2023. The services segment was the main driver for the private sector loan rise.Services (contributes 32% to private sector loans) went up 2.0% MoM (+12.3% in 2023), while general trade (contributes 21% to private sector loans) moved up 0.9% MoM (+8.6% in 2023), and consumption and others (contributes 21% to private sector loans) gained 0.7% MoM (+8.4% in 2023).However, the real estate segment (contributes 20% to private sector loans) declined 0.9% MoM (-7.3% in 2023) in December last year. Outside Qatar loans went down by 1.2% MoM (-3.9% in 2023) during December 2023.Public sector deposits increased by 4% MoM (-1.6% in 2023) in December 2023.Looking at segment details, the government institutions’ segment (represents 56% of public sector deposits) rose by 5.5% MoM (-1.1% in 2023), while the government segment (represents 28% of public sector deposits) increased by 2.8% MoM (-7.9% in 2023), and the semi-government institutions’ segment edged up 0.7% MoM (+9.8% in 2023) in December 2023.Private sector deposits declined by 1.1% MoM (+1.3% in 2023) in December 2023. On the private sector front, the companies and institutions’ segment dropped by 3.2% MoM (-5% in 2023). However, the consumer segment edged up by 0.8% MoM (+7.7% in 2023) during December 2023.Non-resident deposits declined by 1.9% MoM (-7% in 2023) in December 2023.Qatar's banking sector loan provisions to gross loans was at 4% in December 2023, compared to 3.9% in November 2023. Liquid assets to total assets was at 31.6% in December 2023, compared to 31.4% in November 2023.An analyst told Gulf Times, "With the December 2023 data out, we can have a look at the performance for 2023, with overall assets showing an increase by 3.4% in 2023 as domestic assets rose due to credit facilities and interbank. The overall growth in the banks’ loan book in 2023 was driven by the private sector, which gained by 4.9% in 2023, driven by a resurgent tourism sector that led to a rise in credit facilities by 12.3% to the services sector in 2023."General trade and private consumption was also strong in 2023, going up by 8.6% and 8.4% respectively. Overall banking sector deposits witnessed a decline by 1.3% in 2023 as non-resident deposits and the public sector deposits drop caused the overall drag”.